Heico Closes Its Largest-Ever Acquisition, Buys Wencor For $2.05B - Heico (NYSE:HEI)

Heico Corp (NYSE:HEI) closed the buyout of Wencor Group from affiliates of Warburg Pincus LLC and Wencor's management for total consideration of $2.05 billion.

The company paid $1.9 billion in cash and $150 million in class A common shares.

This is HEI's largest-ever acquisition, and Wencor joined the company's Flight Support Group business.

HEI expects the acquisition to be accretive to its earnings within the year of deal closure.

As earlier highlighted, HEI expects Wencor to generate adjusted proforma revenues of around $724 million and EBITDA of about $153 million in 2023.

Also, the company anticipates estimated tax benefits of about $75 million from the acquisition, to be realized through FY38.

"Wencor is a perfect and highly complementary fit with HEICO, as the combination will be transformative, providing a unique and growing portfolio of proprietary cost-saving solutions for our airline and OEM customers. We welcome Shawn Trogdon, Wencor's talented CEO who will continue to lead Wencor, and the phenomenal Wencor Team to the HEICO family. HEICO has a long history of appreciation for its Team Members by providing an excellent working environment, advancement opportunities and participation as HEICO owners through our 401k plan," said Laurans A. Mendelson, Chairman and CEO, and Eric A. Mendelson, Co-President and Flight Support Group's CEO.

Last month, the company closed $1.2 billion worth of investment-grade senior notes offering to fund the Wencor buyout.

As of April 30, 2023, cash and cash equivalents stood at $127.2 million.

Price Action: HEI shares are trading higher by 1.46% at $177.47 on the last check Friday.

HEIHeico Corp

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